Gold: Volatility continues as tariff war shakes up commodities

May 14 16:05 2019 Print This Article

Gold has retracted on Tuesday, after starting the week with sharp gains. In the North American session, the spot price for one ounce of gold is $1294.64, down 0.39% on the day. There are no major U.S. events on the schedule. On Wednesday, the U.S. releases retail sales reports.

After months of negotiations and assurances that a U.S-China trade deal was imminent, investors were treated to another round of tariffs and counter-tariffs. This has led to sharp swings in the equity and commodity markets. On Friday, the U.S. raised tariffs on $200 billion in Chinese goods, from 10% to 25%. The Chinese response was vigorous, with Beijing announcing on Monday that it would slap tariffs on $60 billion of U.S products. Risk appetite has been hit had, and gold took full advantage on Monday, soaring 1.0%. Gold prices have reversed directions on Tuesday, and traders should be prepared for further swings this week.

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